97% Returns In 3 Months: Defence Multibagger Receives Rs 18.3 Cr Through Warrant Conversion, Issues 21.43 Lakh

Apollo Micro Systems has raised ₹18.32 crore through the conversion of warrants into equity shares, strengthening its capital base at a time when defence and aerospace-linked companies remain closely watched by Indian market participants. The company's Securities Allotment Committee approved the allotment of 21.43 lakh equity shares on June 23, 2026, after receiving the warrant exercise money from investors.

The development is relevant for shareholders because warrant conversion brings additional capital into the company and increases the number of equity shares in circulation. It also shows that the warrant holders chose to pay the balance amount and become equity shareholders, rather than letting the warrants lapse. For a company operating in defence electronics and aerospace systems, such capital actions are tracked for both funding and investor sentiment.

Apollo Micro Systems allots 21.43 lakh shares after warrant conversion

Apollo Micro Systems allotted 21,43,095 equity shares of face value Re 1 each after the conversion of an equal number of warrants. These warrants had earlier been issued on a preferential basis. The conversion was completed after the company received an aggregate ₹18.32 crore as the warrant exercise amount from the allottees.

The shares were allotted at an issue price of ₹114 per warrant. Of this, ₹85.50 per warrant was paid at the time of conversion as the balance exercise amount. Once allotted, the new equity shares will rank pari passu with the existing equity shares of Apollo Micro Systems, meaning they will carry the same rights as the company's current shares.

Following the allotment, Apollo Micro Systems' issued and paid-up share capital increased from 36.94 crore equity shares to 37.15 crore equity shares. While the increase is modest in percentage terms, it still expands the company's equity base and completes another tranche of capital infusion linked to earlier preferential warrants.

Why warrant conversion matters for shareholders

Warrants are instruments that give holders the right to subscribe to equity shares at a pre-decided price, usually within a specified period. In India, companies often use preferential warrants to raise capital from promoters, institutional investors or selected non-promoter investors. The structure allows companies to receive part of the money upfront and the balance when warrants are converted.

For investors, the conversion stage is important because it requires the warrant holder to commit additional funds. If the holder sees limited value in conversion, the warrant may remain unexercised. When investors choose to convert, it is usually read as a sign that they remain willing to hold equity exposure in the company.

However, warrant conversion also increases the outstanding share count. This can have a dilutive effect on earnings per share if profits do not grow in line with the expanded equity base. Therefore, investors usually assess both sides of the transaction: the capital received by the company and the additional shares entering the market.

In Apollo Micro Systems' case, the conversion brings in fresh funds while also adding 21.43 lakh shares to the paid-up capital. The newly issued shares form part of the company's enlarged equity structure and will be eligible for the same corporate benefits as existing shares, subject to applicable rules and record dates.